RBC Bearings to Acquire Dover’s Sargent Aerospace & Defense Business
March 26 2015 - 4:05PM
Business Wire
- Expands and Strengthens Offering to
Existing Customer Base
- Accretive to Earnings and Cash Flow in
Fiscal 2016
RBC Bearings Incorporated (Nasdaq: ROLL), a leading
international manufacturer of highly-engineered precision plain,
roller and ball bearings for the industrial, defense and aerospace
industries, today announced that it has entered into a definitive
agreement to acquire the Sargent Aerospace & Defense business
(“Sargent”) of Dover Corporation (NYSE: DOV) for $500 million, to
be financed through a combination of cash on hand and senior debt.
The transaction is expected to close in the second calendar quarter
of 2015 (our fiscal first quarter of 2016), subject to customary
closing conditions, including regulatory review.
“Today we are very pleased to announce the execution of an
agreement between a subsidiary of Dover Corporation and RBC
Bearings to acquire Sargent Aerospace & Defense. Sargent
supplies highly engineered products to a customer base that we know
well and serve daily. Their manufacturing processes and design
expertise align very well with and complement those of RBC
Bearings,” said RBC Bearings Chairman, President and Chief
Executive Officer, Dr. Michael J. Hartnett. “We are adding a very
talented Sargent team who are experts in these products and we are
excited to welcome those valued employees to the growing RBC
Bearings team.”
With headquarters in Tucson, Arizona, Sargent is a leader in
precision-engineered products, solutions and repairs for aircraft
airframes and engines, rotorcraft, submarines and land vehicles.
The company manufactures, sells, and services hydraulic valves and
actuators, specialty bearings, specialty fasteners, seal rings
& alignment joints, and precision components under leading
brands including Kahr Bearing, Airtomic, Sonic Industries, Sargent
Controls, and Sargent Aerospace & Defense. Annual sales are
approximately $195 million and the company has over 750 employees
in six facilities in three countries.
RBC Bearings management estimates earnings accretion between
$0.25 to $0.35 per diluted share for the first twelve months of
operations as a combined Company, annual run-rate synergies of
approximately $7.5 million achieved over a five year period and
approximately $78 million in tax benefits based on a NPV basis.
Shareholder approvals are not required to complete the
transaction.
Moelis & Company served as the exclusive financial advisor
and Kirkland & Ellis LLP served as the legal advisor to RBC
Bearings.
RBC Bearings will host a live webcast on, Friday, March 27,
2015, at 2:00 p.m. ET. Dr. Michael J. Hartnett, Chairman, President
and Chief Executive Officer, and Daniel A. Bergeron, Director, Vice
President and Chief Financial Officer, will discuss the acquisition
of Sargent. Investors and analysts can access the webcast from the
investor relations portion of the Company’s web site,
www.rbcbearings.com, on the day of the conference call and click on
the webcast link.
If you do not have access to the Internet and wish to listen to
the call, dial 855-638-4818 (international callers dial
262-912-6187) and enter conference ID # 14059885.
About RBC
RBC Bearings Incorporated is an international manufacturer
and marketer of highly engineered precision bearings and
components. Founded in 1919, the Company is primarily focused on
producing highly technical or regulated bearing products requiring
sophisticated design, testing, and manufacturing capabilities for
the diversified industrial, aerospace, and defense markets.
Headquartered in Oxford, Connecticut, RBC
Bearings currently employs approximately 2,510 people and
operates 25 manufacturing facilities in five countries.
RBC BearingsDaniel A. Bergeron,
203-267-5028dbergeron@rbcbearings.comorAlpha IR GroupMichael
Cummings, 617-461-1101investors@rbcbearings.com
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